Singapore: Oil prices edged lower in subdued Asian trade on Monday but retained support from concerns about a crisis in Libya as well as an upbeat demand outlook in the US, analysts said.
The US benchmark, West Texas Intermediate (WTI) for delivery in July, fell 26 cents to USD 104.09 per barrel in mid-morning trade. Brent North Sea crude for July delivery dropped 26 cents to USD 110.26.
Singapore's United Overseas Bank said "trading action may be limited" with financial markets in the United States and Britain closed for public holidays.
"European geo-political concerns and signs of improving US crude demand" provided a lift to prices, it said in a note to investors.
Traders are closely watching the situation in Ukraine, where chocolate baron Petro Poroshenko on Sunday claimed a resounding victory in the country's key presidential election.
The polls were triggered after former pro-Russian leader Viktor Yanukovych was ousted in February.
Poroshenko immediately vowed to end a bloody pro-Russian uprising that thwarted voting across swathes of the separatist east.
Washington and its European allies supporting Ukraine's Western-friendly government have accused Russia of fomenting unrest in the country's east, allegations Moscow denies.
A full-blown armed conflict in the ex-Soviet state - a major conduit for Russia's gas exports to Europe - could disrupt supplies and send energy prices rocketing, analysts say.
Prices have been propped up by fears of a supply disruption in OPEC member Libya, where escalating lawlessness has been aggravated by power struggles between politicians and militias.
Upbeat sentiment about demand in the US following a bullish crude stockpiles report last week also lent support, analysts said.
First Published: Monday, May 26, 2014, 09:42